If you want to lick poverty, it’s necessary to achieve high economic growth. That’s commonsensical, right?. But how do you achieve high economic growth and sustain it? Experts say there is no silver bullet. But in a latest study by the World Bank on 13 fast growing economies, experts say they were able to identify the ingredients of a secret sauce. These fast growing economies fully exploited the world economy; maintained macroeconomic stability; mustered high rates of saving and investment; let markets allocate resources; and had committed, credible and capable governments.
These 13 countries are Botswana, Brazil, Hongkong, Indonesia, Japan, Korea, Malaysia, Malta, Oman, Singapore, Taiwan, and Thailand. These countries posted 7 percent growth rates over 25 years or more after World War 2.
How to sustain high growth? Says the Report: “For growth to be sustained, it must be growth that takes into account that we are living in a more and more globalized world,” says Danuta Hubner, European Commissioner for Regional Policy. “We need growth that is using all the opportunities that are offered by the global economy.”
There you go! Globalization, and making the most out it, is the key.